This morning, Dialog Semiconductor announced a significant downward adjustment to its FY16 guidance. The group now expects to see a high single digit sales decline vs. the slight growth expected previously (vs. current consensus expectation of 0.7% sales growth). In addition, the group has reported Q1 results below consensus estimates. Q1 sales fell 39% sequentially to USD241m (down 23% yoy). Q1 underlying EBIT came out at USD30m and EPS came out at USD0.28, i.e. 10% below consensus expectations for EPS at USD0.31. For Q2, the company sees revenue in the range of USD240m to USD260m, which at the mid-point is 5% below the current street expectation of USD264m and 2% below our estimate at USD254m. We are waiting for the conference call to be held today at 10:30am.